Solara Exploration Ltd.
TSX VENTURE : SAA.A
TSX VENTURE : SAA.B

Solara Exploration Ltd.

October 06, 2010 11:56 ET

Solara Exploration Announces Plans for Two Cardium Horizontal Wells and $3 Million Financing

CALGARY, ALBERTA--(Marketwire - Oct. 6, 2010) - Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) is pleased to report that it is currently tieing-in its recently completed Cardium horizontal oil and gas well located in the Pembina (Buck Lake) area of western Alberta. The Company expects the well to be on full production within the next ten days which had tested at a rate in excess of 1,700 BOE/d over a 24 hour period after recovery of load fluid. Solara is currently licensing a second horizontal well on its interest lands at Buck Lake within one-half of a mile of its recent oil discovery on the project. Solara also announces that it has entered into a joint venture agreement with another company which provides for Solara to farmin and operate the drilling of another horizontal well into the Cardium formation directly offsetting its discovery well at Buck Lake. Solara anticipates that this drilling operation will commence on or before the end of October, 2010, with the other horizontal well to be drilled on its lands immediately afterwards.

Solara also reports that it is currently undertaking a private placement of up to 6,700,000 Flow-Through Class A Shares and an equal number of half-warrants for total proceeds of $3,015,000. Each full warrant plus $0.55 will entitle the holder to acquire one Class A Share of the Company on or before June 30, 2011. The proceeds of the private placement will be used to fund Solara's fourth quarter drilling programs at Buck Lake (Pembina) and Dewberry, Alberta.

About Solara Exploration

Solara Exploration is a publicly traded junior oil and gas company focused on the exploration, development and acquisition of oil and natural gas in Western Canada.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

54,383,309 Class A Shares

986,700 Class B Shares

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Contact Information

  • Solara Exploration Ltd.
    Donald R. Holding
    President and Chief Executive Officer
    (403) 537-0458
    (403) 537-0462 (FAX)
    don_solaraexploration@shaw.ca
    or
    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8